Bankruptcy Exemptions in Arkansas
What property you can keep in bankruptcy in Arkansas: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Arkansas residents may choose either the exemptions under the Arkansas Constitution and laws, or the federal bankruptcy exemptions in 11 U.S.C. 522(d). Ark. Code Ann. 16-66-217
| State or federal exemptions | Arkansas residents may choose either the exemptions under the Arkansas Constitution and laws, or the federal bankruptcy exemptions in 11 U.S.C. 522(d). Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. Source: Ark. Code Ann. 16-66-217 |
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| Homestead exemption | Under the state system: a rural homestead of up to 160 acres with improvements, up to $2,500 in value but never less than 80 acres regardless of value; or an urban homestead of up to 1 acre, up to $2,500 in value but never less than one-quarter acre regardless of value (Ark. Const. art. 9, §§ 4-5, as listed in the statute). The statute's bankruptcy list also includes a residence exemption of $800 (unmarried) or $1,250 (married). Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. A filer who elects the federal list uses 11 U.S.C. 522(d)(1) instead. |
| Car exemption | The debtor's interest in one motor vehicle, up to $1,200. Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. Source: Ark. Code Ann. 16-66-218(a)(2) |
| Wildcard exemption | Personal property of the filer's choosing (in addition to clothing): up to $500 for a married person or head of a family, or $200 for an unmarried person who is not a head of family (Ark. Const. art. 9, §§ 1-2). Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. |
| Retirement accounts | Assets in, and the right to payments from, pension, profit-sharing and similar plans (including self-employed plans), IRAs and simplified employee pensions are exempt, unless the plan or account does not qualify under the Internal Revenue Code. Separately, the bankruptcy list in 16-66-218(b)(16) protects IRA deposits made more than one year before filing, up to $20,000. Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. |
| Wages | Wages of laborers and mechanics for 60 days are exempt (subject to the constitutional personal property limits), and the first $25 per week of net wages is absolutely exempt. Read on FindLaw (codes "current as of March 28, 2024"), a mirror permitted for Arkansas; verify against the official Arkansas Code. |
More Arkansas bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Arkansas?
Arkansas residents may choose either the exemptions under the Arkansas Constitution and laws, or the federal bankruptcy exemptions in 11 U.S.C. 522(d).
How much home equity is protected in bankruptcy in Arkansas?
Under the state system: a rural homestead of up to 160 acres with improvements, up to $2,500 in value but never less than 80 acres regardless of value; or an urban homestead of up to 1 acre, up to $2,500 in value but never less than one-quarter acre regardless of value (Ark. Const. art. 9, §§ 4-5, as listed in the statute). The statute's bankruptcy list also includes a residence exemption of $800 (unmarried) or $1,250 (married).
Can I keep my car in bankruptcy in Arkansas?
The debtor's interest in one motor vehicle, up to $1,200.
Does Arkansas have a wildcard exemption?
Personal property of the filer's choosing (in addition to clothing): up to $500 for a married person or head of a family, or $200 for an unmarried person who is not a head of family (Ark. Const. art. 9, §§ 1-2).
Are retirement accounts protected in bankruptcy in Arkansas?
Assets in, and the right to payments from, pension, profit-sharing and similar plans (including self-employed plans), IRAs and simplified employee pensions are exempt, unless the plan or account does not qualify under the Internal Revenue Code. Separately, the bankruptcy list in 16-66-218(b)(16) protects IRA deposits made more than one year before filing, up to $20,000.
Are wages protected in bankruptcy in Arkansas?
Wages of laborers and mechanics for 60 days are exempt (subject to the constitutional personal property limits), and the first $25 per week of net wages is absolutely exempt.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.